ABUJA – The Federal Executive Council (FEC) has approved a loan of approximately $618 million from a consortium of financiers to fund the purchase of six fighter aircraft and ammunition for the Nigerian Air Force. This was announced by the Minister of Information and National Orientation, Mohammed Idris, following the FEC meeting led by President Bola Tinubu on Wednesday, according to reports from Voice of Nigeria.
Standing in for the Minister of Finance, Wale Edun, Idris highlighted the significance of the loan, which includes a credit facility of 443.3 million euros and $141 million. These funds will be used to procure six M346 fighter aircraft and related ammunition to strengthen Nigeria’s air defense capabilities.
This acquisition is part of a larger modernization plan for the Air Force. Earlier in October, the Nigerian Air Force confirmed the purchase of 24 M-346 combat jets and 10 AW109 Trekker helicopters, with the first three jets expected to arrive by early 2025.
Additional FEC Approvals
Idris also disclosed other key decisions taken during the FEC meeting:
- Approval for the Nigerian Customs Service for seven procurement contracts.
- Agreements to eliminate double taxation and prevent tax evasion between Nigeria and both Hong Kong and Botswana.
In the cultural sector, Minister of Art, Culture, Tourism, and Creative Economy, Hannatu Musawa, revealed that the FEC has approved the creation of the Creative Economy Development Fund. This initiative aims to deepen the creative sector by providing financial access for creative industry professionals, allowing them to leverage their intellectual property (IP) as collateral for funding.
Musawa emphasized the potential of the fund to drive economic, creative, and cultural growth, especially for younger Nigerians. Afreximbank has already committed $200 million to the fund, with further contributions expected from other financial institutions.
The establishment of the Creative Economy Development Fund aligns with the administration’s goal of expanding job opportunities and fostering creativity among the youth.
This major cabinet decision underscores the Nigerian government’s strategic focus on security, tax cooperation, and cultural development as part of its broader agenda for national progress.